As such, under this framework, the world has experienced the inception of transnational corporations, multinational corporations, rapid rise of urban centres and freer movements of goods, and services as well as people, capital, culture and even identity (Soros, 2002; Balakrishnan, 2003; Fischer, 2003; Molina & Molina, 2009; Small- Medium Enterprises, 2007). Moreover, as globalization becomes one of the defining characteristics of the contemporary period, it becomes one of the fundamental elements in understanding the global market economy. Since it sheds light on the contemporary condition that firms and organizations are dealing with regardless of the place or country where the firms are situated.
However, as globalization has created a smaller and more connected world (SME, 2007), it has also widened the gap between developed countries and developing countries (Nolan, 2005; Nolan & Yeung, 2001a, 2001b). In fact, Nolan (2005) states
In light of this situation, a firm in developing country has a lot of catching up to do with companies in the developed world if it intends to create a niche in the global market. As such, the problems of catching up posit a humongous challenge to large firms in developing countries.
Recognising the existence of the problems of catching up, the paper will try to examine the problems of catching up within the context of a large firm in a developing country. Considering the wide scope of the subject matter that the paper intends to examine, the research will be limiting its study into one developing country only – China. Likewise, it will only tackle one large domestic firm in China. Furthermore, in tackling this query, a library research had been conducted. The following electronic databases Academic Source Complete, Business Source Complete, Jstor, and EConlit were searched using the following key terms: catch up, economic trade, China, China’s economic growth, international trade, globalization, firms, and economic theories. Moreover, books dealing with the subject matter of the research were also included in the search.